How much will you pay for the policy

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1. Consider two bonds A and B both with a coupon rate of 11 percent and a yield to maturity of 9.8 percent. these are standard with semi-annual coupon payment. Bond A matures in 5 years while B matures in 11 years. what is the price of each bond.

2. Calculating Perpetuity Values. Curly's Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. If the required return on this investment is 6 percent, how much will you pay for the policy?

Reference no: EM132007443

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